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Bitcoin Updates: Investors Withdraw from Exchanges as Bitcoin Faces a $250 Billion Liquidity Barrier

Bitcoin Updates: Investors Withdraw from Exchanges as Bitcoin Faces a $250 Billion Liquidity Barrier

Bitget-RWA2025/11/01 21:22
By: Bitget-RWA
- Bitcoin faces $250B liquidity wall as institutions and whales move assets off exchanges, tightening supply and amplifying volatility near $114,000 price clusters. - ZOOZ Strategy adds $10M Bitcoin to treasury amid macroeconomic uncertainty, while Binance's 3–4 reserve ratio signals potential buy signals for price rebounds. - $2B net outflows from centralized exchanges and MEXC's $5.5B Bitcoin outflows raise insolvency fears, echoing pre-FTX trust concerns despite 100% Proof of Reserves claims. - Key pric

Bitcoin Encounters $250B Liquidity Barrier as Exchange Balances Plummet

The liquidity environment for Bitcoin is undergoing significant changes as more major investors and institutions transfer their holdings away from exchanges, pointing to a looming $250 billion liquidity barrier. With

trading in the $113,000–$114,000 range, crucial price zones at $117,000, $114,000, and $111,000 are heightening the risk of sharp market swings, according to . These areas, where heavy concentrations of long and short positions exist, could spark rapid price changes, coinciding with a rise in self-custody as investors look to safeguard their assets amid global economic uncertainty.

Bitcoin Updates: Investors Withdraw from Exchanges as Bitcoin Faces a $250 Billion Liquidity Barrier image 0

ZOOZ Strategy Ltd., the first company listed on both Nasdaq and TASE to make Bitcoin a primary treasury asset, has recently acquired $10 million in Bitcoin (94 coins at $112,000 each), bringing its total to 1,036 coins valued at $115 million, as

reported. CEO Jordan Fried described Bitcoin as a "robust store of value," but the company's low liquidity ratios—such as a current ratio of 0.77—underscore broader vulnerabilities in the corporate crypto landscape. This acquisition aligns with ZOOZ Power Ltd.'s $180 million private fundraising, highlighting a coordinated approach to boost capital and seize opportunities in the crypto sector.

At the same time, Binance's ratio of Bitcoin to stablecoins has fallen to 3–4, a rare occurrence that has historically preceded major price increases. Analyst Darkfost pointed out that similar ratios in 2023 and 2025 came before significant Bitcoin rallies, like the surge from $78,600 to $123,500 in March 2025, according to a

. The shrinking ratio indicates that more stablecoin liquidity is on standby, ready to move into Bitcoin if the price holds above $80,000. This trend is further supported by a $2 billion net withdrawal from centralized exchanges this week, as more investors transfer assets to self-custody wallets, according to a .

This migration away from exchanges is not just a retail phenomenon. Large holders, or whales, have stepped up their activity, with 2,000 Bitcoin (worth $220 million) leaving Binance in just two hours, as reported by a

citing Lookonchain. Coinbase also saw its Bitcoin reserves rise by 2,772 BTC in Q3 2025, part of its plan to use Bitcoin as a liquidity reserve alongside cash. These developments point to a broader move toward long-term holding, but may also tighten short-term supply and increase volatility.

Liquidity challenges are putting market stability to the test. MEXC, one of the top exchanges, has denied rumors of insolvency after experiencing record Bitcoin outflows totaling $5.5 billion in 24 hours—exceeding its $5.13 billion in assets, as noted in a

. While MEXC claims full Proof of Reserves coverage, experts such as Shanaka Anslem Perera stress that on-chain audits are essential for rebuilding confidence. The current situation is reminiscent of the anxiety seen before the FTX collapse, with traders remaining cautious about centralized custodians.

Bitcoin’s future direction depends on how these key liquidity zones are resolved. If the price breaks above $117,000, it could trigger a wave of short liquidations, pushing the price toward $120,000. Conversely, a drop below $111,000 could lead to a correction down to the $108,000 support level, as highlighted in the Coinotag article. Market watchers are also monitoring the Federal Reserve’s policy moves, as BlackRock’s $88 billion Bitcoin ETF and regulatory developments continue to influence institutional interest.

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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